In Germany, restaurateurs are worried about an increase in tax on food, which will come into force in January 2024. This tax will increase from 7 to 19%, and could weaken the economy of the catering sector.
12,000 German restaurants threatened by the increase in VAT on foodstuffs.
Food prices are expected to rise again in January following the reintroduction of VAT on restaurants, from 7% to 19%.
The government reduced this tax three years ago in response to the COVID crisis, while many restaurants were still reeling from the pandemic.
Germany is set to become one of the countries in Europe with the highest food VAT. Many restaurants are forced to reflect price increases on their menus. Independent and family-owned restaurants will be most at risk of insolvency. The DEHOGA association (German Hotel and Catering Association) is worried, its general director, Ingrid Hartge, declared:
“It’s a disaster for our sector, for many companies. According to a Dehoga investigation,
12,000 businesses will not survive. They will either give up or find themselves insolvent.”
It’s the latest blow to restaurants and customers who have survived COVID shutdowns and soaring energy costs caused by the war in Ukraine. Certain social categories will no longer be able to afford to go to restaurants.”
Menu prices
German classics, like Schnitzel and Currywurst, are set to see their price increase by 2 euros per dish, which many people may not be able to afford.
For Philipp Satzer, owner of the Alt-Berliner Gasthaus Julchen Hoppe restaurant, the German government has betrayed them. German Chancellor Olaf Scholz had promised during his campaign not to increase VAT;
“In the wake of the COVID pandemic, in the midst of inflation, we simply cannot manage this alone. Unfortunately, the Chancellor has not kept his word and it is sad that seemingly inexhaustible funds are available to wars, while working citizens must increasingly scrutinize every penny.”
The end-of-year celebrations, a period when restaurateurs have higher turnover, will be decisive.